The Dollar Index remains flat as trading gets underway this week after dropping more than 0.5% during Friday. Investors are now pausing to see how negotiations for a stimulus package unfold in Washington. Last week’s losses resulted from increasing hopes of an agreement between Democrats and Republicans that would allow the release of the much-needed funds. Such a scenario is positive for the country’s future economic prospects and diminishes demand for safe havens, with the dollar’s appeal waning as a result.
Gold is consolidating after Friday afternoon’s sharp rally with investors waiting for new market movers. Although this could be a crucial week for Brexit, this doesn’t seem to be an important issue for bullion with news from central banks and US politics much more likely to trigger movements. We are in a wait and see scenario, as investors try to understand what is going to happen in early November with the US election and the subsequent reaction of both stocks and currency markets. Technically gold is regaining strength with the consolidation above $1,920 a supportive signal for bullion and confirming traders’ huge interest.
Carlo Alberto De Casa – Chief analyst, ActivTrades
Disclaimer: opinions are personal to the authors and do not reflect the opinions of LeapRate. This is not a trading advice.
Experienced writer and journalist, working in the global online trading sector, Steffy is the Editor of LeapRate. She has previous experience as a copywriter and has been with the company since January 2020. Steffy has a British and American Studies degree from St. Kliment Ochridski University in Sofia.
